Xylem Inc. Reports $2.336 Billion Revenue in Q2 2026, Net Income Rises 16.4%

Xylem Inc. reported a revenue of $2.336 billion for the second quarter of 2026, reflecting a 1.5% increase from $2.301 billion in the same period last year. The growth was attributed to organic revenue growth of $30 million, or 1.3%, and favorable foreign currency impacts of $29 million. However, this was partially offset by a revenue loss of $31 million from divestitures and an additional $7 million from acquisitions. For the first half of 2026, total revenue reached $4.461 billion, up 2.1% from $4.370 billion in the prior year.

The company's net income attributable to Xylem for the second quarter was $263 million, a 16.4% increase compared to $226 million in the previous year. This resulted in earnings per share of $1.11, up from $0.93. The increase in net income was driven by higher operating income, which rose to $390 million, a 27.9% increase from $305 million in the prior year. The operating margin also improved to 16.7%, up from 13.3%. For the first half of 2026, net income attributable to Xylem was $456 million, compared to $395 million in the same period last year.

Strategically, Xylem has made significant acquisitions, including WaterFleet Intermediate Holdings, Inc. for approximately $200 million and TriOS Mess- und Datentechnik GmbH for about €190 million ($216 million). These acquisitions are expected to enhance Xylem's capabilities in mobile water and wastewater utility services and optical sensing for water quality monitoring. The company also divested its international metering business for approximately $80 million, which resulted in a cumulative loss of $37 million.

Operationally, Xylem's total orders surged to $3.086 billion in the second quarter, a 42% increase from $2.174 billion in the prior year, with organic orders growing by 40.9%. The backlog at the end of June 2026 was $5.315 billion, up 5.9% from $5.018 billion a year earlier, driven by strong order intake in the Water Solutions and Services and Applied Water segments. The company anticipates that approximately 40% of this backlog will be recognized as revenue in the remainder of 2026.

Looking ahead, Xylem has updated its total revenue growth outlook to approximately 2% and its organic revenue growth outlook to between 2% and 3% for 2026. This outlook reflects the current volatility in the market, including geopolitical and macroeconomic uncertainties. The company remains focused on leveraging its strategic investments and operational efficiencies to navigate these challenges and drive future growth.